Surfwear brand Hot Tuna is on the prowl for prospective buyers, after slow growth and a stagnant market forced the company to sell.
The brand, established in Australia in 1969, is now operated out of the UK, following its sale by original founder, pro-surfer Richard Meldrum.
Now, following a five year financial struggle, the brand is on the market again, with Hot Tuna executive chairman Francis Ball announcing plans to sell its namesake in a recent company statement.
Ball said the company, which sells shorts, t-shirts, swimwear and surfing gear across the UK, United States and Australia, has been struggling to raise funds to expand the brand in new international markets.
He added that raising new investment from existing shareholders for the development and promotion of the Hot Tuna brand would be difficult.
“It is unfortunate that the current equity funding environment makes it very difficult for us to raise further capital, and as a result we believe that the future of the business, its customers, distributors, suppliers and employees is best served through a sale of the brand,” he said.
“The retail environment continues to be challenging in the UK, US and continental Europe which is undoubtedly impacting revenues in the current financial year.
"Action has already been taken to reduce costs. However, there is a need to invest in and promote the Hot Tuna brand, and our rate of growth, whilst encouraging, is slower that previously expected.”
However, despite lacklustre
international figures, Hot Tuna's Australian operations are faring
well, with “good growth” expectations and the launch of an online
store this month.
“In conjunction with our prospective new
Australian distribution partner, we see a great opportunity for Hot
Tuna in South-East Asia,” Ball said.
The company has not
yet identified interested or possible buyers.